Data centres and green hydrogen are among the sectors supporting the capital expenditure cycle. The SBI chief’s assessment points to these newer industries as sources of borrowing demand as businesses increase spending on infrastructure projects across the country.

The report links higher corporate capital expenditure to stronger demand and improved growth expectations. Companies are stepping up investment as their business outlook improves, with infrastructure spending forming part of that increase. It does not give a figure for the overall rise in expenditure.

Banks are benefiting from this financing demand. Lending has expanded significantly, according to the report, as companies show a preference for borrowing from banks rather than raising money through bonds. No lending growth rate or comparison period has been provided.

The information available identifies the sectors and the direction of corporate borrowing, but does not name specific projects or borrowers. It also does not state how much credit data centres or green hydrogen account for, leaving the scale of their contribution unclear.